Michael Kors Buys Fashion Label Versace for $2.2 Billion

  • Kors changes name to Capri as it becomes a house of brands
  • Donatella Versace will continue to lead creative direction
Michael Kors may buy Versace

Michael Kors Holdings Ltd. will buy Italian fashion label Gianni Versace SpA for 1.83 billion euros ($2.2 billion), bringing the American luxury company closer to its goal of becoming an international house of fashion brands.

The company said it plans to increase Versace’s sales to $2 billion annually, more than double the current level, expanding the number of stores globally to 300 from about 200 and accelerating e-commerce development. Michael Kors said it will rename itself Capri Holdings Ltd. as it develops its multibrand luxury strategy.